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Lynn and Jan operate a bed and breakfast on the coast of Alabama. As customers make reservations they are required to pay cash in advance
Lynn and Jan operate a bed and breakfast on the coast of Alabama. As customers make reservations they are required to pay cash in advance equal to one-half of the rate for their stay. On January 21, they took a reservation for a booking in May 27- 29 with a total cost of $900. Use the following tabular analysis to record the cash receipt on that date: Cash Jan 27 Assets Accounts Receivable Liabilities Accounts Uneamed Payable Revenue Common Stock Stockholders' Equity Retained Earnings Rev Exp. Div Increase Cash $450 and Unearned Revenue $450. Increase Cash $450 and Service Revenue $450. Increase Cash $450, increase Accounts Receivable $450 and increase Service Revenue $900. Increase Accounts Receivable $450, increase Cash $450, increase Service Revenue $450 and increase Unearned Revenue $450
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